Warner Bros reopens door to Paramount, putting Netflix deal in doubt

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Netflix may lose ‌its place as the preferred suitor.Paramount enticed Warner's board back to the bargaining table last week by raising the possibility of an improved cash offer ‌for Warner shareholders. In its revised bid, Paramount raised the termination fee it would pay should the deal fail to gain regulatory approval, to $7 billion — up from $5.8 billion. It also agreed to pay Warner shareholders 25 ​cents per share per quarter, for every quarter beyond September 30 that the deal does not close.The rival bidder also agreed to contribute more equity, should banks raise concerns about Paramount's ability to finance the deal when it closes.Warner's board said it has not determined whether the revised Paramount proposal is superior to the merger with Netflix, but that directors will engage further. Should a superior deal emerge, Netflix has four business days to revise its offer.Netflix declined to comment."Paramount welcomes the WBD Board's determination and looks forward to continuing to engage constructively ‌with WBD to deliver the benefits of Paramount's proposal to ⁠WBD shareholders, the creative community and consumers," Paramount said in a statement.The fight over Warner Bros is complicated by the fact that Netflix and Paramount are bidding for different sets of assets. Paramount's bid, now at $31 per share in cash, is for the whole company. Netflix ⁠has offered $27.75 per share in cash, a total of $82.7 billion including net debt, for the movie and television studios, its catalog and HBO Max streaming service. Warner Bros plans to spin off its television division into a separately traded company, Discovery Global.The value of Netflix’s bid depends partly on the debt level of Discovery Global and its equity value once it starts trading.Warner's board estimates ​Discovery ​Global could fetch between $1.33 and $6.86 a share, potentially lifting the total return to shareholders above Paramount's ​earlier $30 a share offer."We expect shareholder lawsuits if Netflix is the ‌ultimate winner, and because the deals are not apples to apples—with the suitors not vying for identical assets and other details surrounding the respective bids requiring discretion—determination of which deal is better will always be subjective," wrote Matthew Dolgin, senior equity analyst at Morningstar.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,946.13 +56.06 (+0.81%)Dow 3049,482.15 +307.65 (+0.63%)Nasdaq23,152.08 +288.40 (+1.26%)Russell 20002,663.33 +11.00 (+0.41%)VIX17.93 -1.62 (-8.29%)Gold5,184.70 +8.40 (+0.16%)Trending tickersBTC-USD Bitcoin USD 68,953.75 +4,973.61 (+7.77%)NVDA NVIDIA Corporation 195.56 +2.71 (+1.41%)CRCL Circle Internet Group 83.14 +21.77 (+35.47%)COIN Coinbase Global, Inc. 183.94 +21.91 (+13.52%)CAVA CAVA Group, Inc. 85.67 +17.87 (+26.36%)PortfolioSign in to access your portfolioSign inTop gainersYOU Clear Secure, Inc. 46.51 +13.04 (+38.96%)CRCL Circle Internet Group 83.14 +21.77 (+35.47%)CAVA CAVA Group, Inc. 85.67 +17.87 (+26.36%)CCC CCC Intelligent Solutions Holdings Inc. 6.34 +1.28 (+25.30%)ECG Everus Construction Group, Inc. 130.10 +25.89 (+24.84%)Top losersIBRX ImmunityBio, Inc. 9.54 -2.01 (-17.40%)LUNR Intuitive Machines, Inc. 15.89 -3.01 (-15.93%)DEO Diageo plc 86.15 -15.99 (-15.66%)GDDY GoDaddy Inc. 79.12 -13.18 (-14.28%)FSLR First Solar, Inc. 210.12 -33.09 (-13.61%)Most activeNVDA NVIDIA Corporation 195.56 +2.71 (+1.41%)PLUG Plug Power Inc. 1.9100 0.0000 (0.00%)IBRX ImmunityBio, Inc. 9.54 -2.01 (-17.40%)INTC Intel Corporation 46.88 +0.76 (+1.65%)ONDS Ondas Inc. 10.30 -0.10 (-0.96%)Top economic eventsEarnings eventsMy earnings eventsEarnings events